By Sarah Perez.
Amazon closed on Whole Foods today in a $13.7 billion deal and began slashing the chain’s grocery prices this morning as a result. While the deal has much larger implications for Amazon, the goal with the price cuts — including those on many of its organic items — is to bring Whole Foods more in line with rival stores. But even with Amazon willing to slim its margins on Whole Foods’ groceries, can it really expect to compete with its top competitor Walmart when it comes to affordable groceries?
Today, Walmart’s brand is associated with a focus on low prices, while people tend to joke that Whole Foods should be called “whole paycheck,” because that’s what it takes to shop there.
Amazon had announced Whole Foods price cuts on things like bananas, organic avocados, organic large brown eggs, organic responsibly farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85 percent lean ground beef, creamy and crunchy almond butter, organic Gala and Fuji apples, organic rotisserie chicken, 365 Everyday Value organic butter and other items. As it turned out, it had already begun discounting other grocery staples today, including milk and cheese.
Read more at TechCrunch.